Marche Internet Priority

E-Commerce Market

Revenue in the eCommerce market is projected to reach US$191.30m in 2023.

Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 14.60%, resulting in a projected market volume of US$330.00m by 2027.

With a projected market volume of US$1,396.00bn in 2023, most revenue is generated in China.

In the eCommerce market, the number of users is expected to amount to 15.9m users by 2027.

User penetration will be 32.9% in 2023 and is expected to hit 48.1% by 2027.

Opinion

ref: Statista Market Forecast

The average revenue per user (ARPU) is expected to amount to US$19.41.

In the last decade, the eCommerce market has evolved from a simple concept of brick-and-mortar retail to a shopping ecosystem that involves multiple devices and store concepts. Many players from both online and offline retail are moving towards multi-channel strategies and are continuously reinventing the way we shop online. Expectations are growing rapidly as customers discover more convenience on all levels – be it product customization, mobile-optimized search, quick checkout processes, or hassle-free delivery. In 2021, the percentage of consumers who made at least one purchase online in the previous 12 months grew to 74% of population in the U.S., 81% in the UK, and 69% in China. In developed countries, the market is in its maturity phase, and the competition among eCommerce players is extremely high and costintensive. Marketplaces such as Amazon and AliExpress are flourishing, while many stand-alone retailers struggle to find their USP, as brand and store loyalty are decreasing and cart abandonment rate in the industry is high. Increasing brand engagement can be achieved through community building (e.g., ASOS Marketplace), loyalty programs, and a seamless mobile and desktop user experience. Chinese key market players such as Alibaba Group, JD, and Pinduoduo jointly contribute to the comprehensive eCommerce ecosystem in China – and are increasingly penetrating other promising Asian markets, such as Indonesia and India. The Chinese population is tech-savvy and mobile-first, and Chinese eCommerce giants are therefore constantly pushing technology forward. They have diversified into literally every sphere that comes in touch with online retail, from payments to logistics. Current developments in China will – to a large extent – define the next decade’s global eCommerce.

Madagascar E-Commerce

Internet access

According to the Digital 2019 report for Madagascar by Hootsuite and WeAreSocial, out of a population of 26.6 million people, only 9.8% have access to the internet. In the country there are around 8.3 million mobile subscriptions (but only 2.3 million have an internet mobile subscription) and 9% of the population are active social media users. Furthermore, 2.1 million people are active mobile social media users. The vast majority of mobile connections are pre-paid (only 3% are post-paid). The social media advertising audience is equal to 2.4 million for Facebook, with much lower figures for other platforms (180,000 for LinkedIn, 54,000 for Instagram and 12,400 for Twitter). According to the Mobile Connectivity Index 2018, Madagascar has an overall index score of 33 out of a maximum of 100 (in particular, the IT infrastructure network has a score of 24.7/100, and the affordability of internet connections has a rate of 35.3/100). There are generally no restrictions on access to the internet in the country. The most popular web search engines in Madagascar are Google (95%), Yahoo and Bing (3.2% and 1.4%, respectively).

E-commerce market

Ref: E-commerce in Madagascar - International Trade Portal

E-commerce in Madagascar is still limited. Though there are no official figures about the market size, according to a survey by Styleex (2018), 65% of Malagasy consumer has never purchased on the internet, with the majority of transactions being carried on through Facebook. This is also due to the fact that a mere 1% of the population has a credit card and only 12% have a mobile money account (data Digital 2019). The vast majority of goods sold through the internet are clothes and hi-tech products (86%). Payments are generally made through cash-on-delivery.

The main factors hindering the development of e-commerce are the poor IT infrastructures, the lack of familiarity with online payment methods, and a weak legal framework. In fact, although in 2014 Madagascar adopted laws on aspects such as electronic transactions, cybercrime, and privacy and data protection, the regulations to effectively enforce the legislation has yet to be put in place. According to UNCTAD's 2018 Business-to-Consumer E-commerce Index, Madagascar ranks 27th out of 44 countries in Africa, and 129th out of the 151 countries in the whole world. The top e-commerce retailer in Madagascar is currently Exeia, who sells electronics, appliances, home decoration, cosmetics, fashion and sportswear.

Facebook is by far the most popular social network (with an estimated 2.4 million users), and its marketplace the most common e-commerce resource of the country.

E-Commerce Market

Opinion

Madagascar E-Commerce

E-commerce market

Address

Address

Social Media